Copper Advances to One-Week High as BoJ Signals Stimulus

Copper reached a one-week high in
New York after the Bank of Japan (8301) said it will shift to open-
ended asset purchases to help spur economic growth.

Central bank officials voted to adopt a 2 percent inflation
target and will begin the asset purchases next year. Japan is
the world’s fourth-biggest user of the metal. Copper prices
climbed 6.3 percent last year as central banks in the U.S.,
Europe and China increased efforts to boost economies.

“Japan’s central bank pledged to do what’s needed to boost
economic growth, and that’s given everything a bit of a bullish
tone today,” Matt Zeman, a strategist at Kingsview Financial in
Chicago, said in a telephone interview. “The copper market is
looking pretty good right now.”

Copper futures for delivery in March rose 0.7 percent to
settle at $3.705 a pound at 1:17 p.m. on the Comex in New York,
after touching $3.7075, the highest since Jan. 11. Floor trading
was closed yesterday for the Martin Luther King Jr. holiday.